HC Deb 01 June 1981 vol 5 cc643-4
43. Mr. Welsh

asked the Lord Privy Seal whether he has any plans to alter the method of allocation of aid to Third world countries; and if he will make a statement.

Mr. Neil Marten

No, Sir.

Mr. Welsh

Is the Minister aware that the Government's new policy is to offer aid to countries for industrial, commercial and political reasons, and not for development? Thus the poorest countries are suffering more, as the facts show. Will not the Minister show some compassion and change the policy so that aid goes to the poorest countries, and thus make our aid policy more meaningful?

Mr. Marten

The hon. Gentleman is wrong. If he rereads my statement on aid policy in February of last year he will see where he has gone wrong. Development considerations are fundamental to our aid programme, and 62 per cent. of our bilateral aid goes to the poorest of the developing countries.

Mr. Chapman

Whatever our personal views on what I believe is a crucial issue, will my hon. Friend confirm that last year our official overseas aid was £167 million more than it was two years before? Even taking into consideration home inflation—which is not necessarily relevant to overseas aid—that increase of 27 per cent. means that there have been no cuts, whether planned or not.

Mr. William Hamilton

Come off it.

Mr. Marten

I do not have my pocket calculator and therefore I cannot confirm the figures. We as a Government have done extremely well in the economic circumstances that have beset the country over recent years.

Mr. Hooley

Will the Minister stop referring back to his own speeches and refer to the figures showing that the allocation of aid in 1980 swung away from the poorest countries and that aid to India, in particular, slumped disastrously? What will he do to reverse that trend?

Mr. Marten

The hon. Gentleman is wrong about aid to India. He is taking the year 1980. As a member of the Select Committee he will know that aid is dealt with in financial years by both India and this country. In the last quarter of the financial year 1980–81, which was in the calendar year 1981, there was an increase in aid to India. In the last financial year we spent more on aid to India than in the previous year.